BorgWarner (NYSE:BWA) Reaches New 12-Month High - Still a Buy?

Key Points

• BorgWarner's stock reached a new 52-week high of $42.45 during trading, reflecting strong market interest and activity with over 1.77 million shares exchanged.
• Several analysts have given **buy** ratings, with target prices ranging as high as **$45.00**, indicating a consensus rating of **"Moderate Buy"** for the stock.
• The company recently announced a **dividend increase** from $0.11 to $0.17 per share and initiated a **$1 billion share buyback plan**, reflecting confidence in its stock valuation.

Shares of BorgWarner Inc. (NYSE:BWA - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $42.45 and last traded at $42.01, with a volume of 1771860 shares traded. The stock had previously closed at $41.70.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Guggenheim dropped their target price on shares of BorgWarner from $38.00 to $33.00 and set a "buy" rating on the stock in a research report on Tuesday, April 22nd. Barclays reiterated an "overweight" rating and set a $45.00 price target (up from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Bank of America upped their price objective on BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Piper Sandler raised their target price on BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Finally, Morgan Stanley boosted their price target on shares of BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a report on Tuesday, August 12th. Ten investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $39.64.

BorgWarner Trading Up 0.7%

The firm has a fifty day moving average of $35.92 and a two-hundred day moving average of $31.83. The company has a market cap of $9.09 billion, a PE ratio of 44.69, a price-to-earnings-growth ratio of 1.26 and a beta of 1.10. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64.

BorgWarner (NYSE:BWA - Get Free Report) last issued its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The firm had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The company's quarterly revenue was up 1.0% on a year-over-year basis. During the same quarter last year, the business earned $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, sell-side analysts predict that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be issued a dividend of $0.17 per share. This is a boost from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a yield of 1.6%. BorgWarner's payout ratio is presently 46.81%.

BorgWarner announced that its Board of Directors has initiated a share repurchase plan on Thursday, July 31st that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the auto parts company to reacquire up to 13.2% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other news, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the sale, the vice president directly owned 55,945 shares in the company, valued at $2,238,359.45. This represents a 4.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP Stefan Demmerle sold 15,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total transaction of $589,650.00. Following the completion of the transaction, the vice president owned 234,040 shares of the company's stock, valued at $9,200,112.40. This trade represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 22,500 shares of company stock valued at $892,175 over the last ninety days. Corporate insiders own 0.63% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of BWA. Global X Japan Co. Ltd. increased its holdings in shares of BorgWarner by 133.4% in the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock worth $26,000 after purchasing an additional 523 shares during the period. Caitong International Asset Management Co. Ltd grew its position in BorgWarner by 1,133.3% during the second quarter. Caitong International Asset Management Co. Ltd now owns 777 shares of the auto parts company's stock worth $26,000 after buying an additional 714 shares in the last quarter. Assetmark Inc. increased its stake in BorgWarner by 81.8% in the 2nd quarter. Assetmark Inc. now owns 809 shares of the auto parts company's stock worth $27,000 after acquiring an additional 364 shares during the last quarter. Addison Advisors LLC raised its holdings in shares of BorgWarner by 1,647.8% in the 2nd quarter. Addison Advisors LLC now owns 804 shares of the auto parts company's stock valued at $27,000 after acquiring an additional 758 shares in the last quarter. Finally, Manchester Capital Management LLC purchased a new stake in shares of BorgWarner in the 1st quarter valued at about $30,000. 95.67% of the stock is owned by institutional investors.

About BorgWarner

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.

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